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On 15 March 2023, the Organisation for Economic Co-operation and Development (OECD) reported that Mexico deposited the instrument for ratification of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (Multilateral Instrument or MLI) to finalize the formal ratification and notification process.
As mentioned in EY Global Tax Alerts, Mexico takes first steps to ratify MLI, dated 10 October 2022, Mexico ratifies MLI, dated 14 October 2022 and Mexico publishes MLI in Federal Official Gazette, dated 28 November 2022; the MLI will enter in force on the first day of the month following the expiration of a period of the three calendar months beginning on the date of its deposit. As a result, the MLI for Mexico will enter into force on 1 July 2023.
Furthermore, the MLI will enter into effect in Mexico with respect to taxes withheld at source at the beginning of the calendar year after the date of entering into force, which is 1 January 2024 as a result of the recent deposit of the instrument of ratification.
Considering dates for entry into force, a case-by-case analysis should be made to identify the impact of the MLI in cross-border transactions involving multinational companies with a presence in Mexico.
For additional information with respect to this Alert, please contact the following:
Mancera, S.C., Mexico City
- Koen Van’t Hek Koot
Ernst & Young LLP, Latin America Business Center, New York
Ana Mingramm
Lucas Moreno
Enrique Pérez Grovas
Jose Manuel Ramírez
Pablo Wejcman
Ricardo Vargas
Ernst & Young LLP, Latin America Business Center, Chicago
- Alejandra Sánchez
Ernst & Young LLP, Latin America Business Center, Miami
- Terri Grosselin
Ernst & Young, LLP, Latin America Business Center, San Diego
- Ernesto Ocampo
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
Lourdes Libreros
Silvestre Del Río
Ernst & Young Tax Co., Latin America Tax Desk, Japan & Asia Pacific
Raul Moreno, Tokyo
- Luis Coronado, Singapore
For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.
